Key Factors
Funding Tax Credits
Will be made available for individuals
– Individuals may receive 100% of a non-refundable federal income tax credit of up to $1,700 for contributing to a scholarship granting organization.
– The program is permanent (no sunset clause).
*Nonrefundable – A nonrefundable tax-credit can reduce your tax liability down to zero but will never generate a refund.
Income Limits
Family income can be up to 300% of the median income by area as calculated by HUD.
-Click Here: HUD Income Limits
-Select your State and then your County and click “View County Calculations”
-Take amount listed under the section Median Family Income and multiply by 300%
FAQs
My state has tax-credit scholarships already, can these existing credits be stacked on with the federal tax-credits?
Yes, ECCA scholarships can be stacked on top of state tax-credit scholarships in applicable states.
What Types of Schools and Educational Programs Are Eligible?
A public, home school, or private elementary or secondary school (including a religious elementary or secondary school)
Can Home schoolers Benefit From the Scholarship?
Yes, home schooling programs can benefit whether treated as a home school or a private school for purposes of applicable State law. Home schools must comply with applicable State law.
What Types of Educational Expenses Can the Scholarship Funds Be Used For?
- Tuition
- Curricula and curricular materials
- Books or other instructional materials
- Online educational materials
- Tuition for tutoring or educational classes outside of the home
- Fees for a nationally standardized norm-referenced achievement test
- Fees associated with an advanced placement examination or any examinations related to admission to an institution of higher education
- Fees for dual enrollment in an institution of higher education
- Educational therapies for students with disabilities provided by a licensed or accredited practitioner or provider
- Including occupational, behavioral, physical, and speech-language therapies.
Who Is Eligible to Receive Scholarships Under This Bill?
An eligible student is a student who is a member of a household with an income which is not greater than 300 percent of the area median gross income and is eligible to enroll in a public elementary or secondary school.
Can the tax-credit on a contribution be carried over?
If the credit allowable for any taxable year exceeds the allowable amount, the excess shall be carried to the succeeding taxable year within five years.
How Does This Bill Differ From Traditional School Voucher Programs?
The ECCA scholarship funds come from taxpayers wanting to receive a federal tax-credit by choosing to redirect a portion of their federal income tax so students can attend the school of their choice…these are not government funds. Vouchers are scholarships that are given to students from state appropriated funds….these are government funds.
Who determines scholarship eligibility and amounts?
Scholarship Granting Organizations like Children's Tuition Fund determine the scholarship eligibility, amounts and use.
Can a State "Opt-out" of ECCA?
States are not required to participate in ECCA. No later than January 1 of each calendar year a State that voluntarily elects to participate in ECCA shall provide to the Secretary a list of the scholarship granting organizations that meet the requirements described in subsection (c)(5) and are located in the State.
